Multiscreen Strategies for Pay TV, OTT and Mobile Operators
Abstract
With the advancement of OTT/Internet Video migrating to many mobile platforms and with Content Owners & Programmers fighting for new markets without cannibalizing normal channels of distribution, this report gives concrete and quantitative evidence of the ROI guidelines and best practices of MSV services already deployed by IPTV, Cable and Satellite Operators worldwide. By articulating the key elements of the CDN, their costs, potential architectures and OpEx for each configuration and deployment size, the report shows in detail that there are several ways to profitability for both large and small Operators, based on in-depth surveys and interviews with over 40 Operators and supporting Vendors.
1.1 Multiscreen Video – A Continuum of Features 9
1.2 Electronic Program Guide 10
1.3 Search and Discover 12
1.4 Control 13
1.5 Access within the Home 14
1.6 Access Everywhere 15
1.7 Follow Me 17
1.8 Quick View: Findings Overview 17
2 Dominant Protocols 23
2.1 Dominant Streaming Protocols & Platforms 23
3 MSV Users and Operators 27
3.1 How People Watch Video on Different Devices 27
3.2 MSV Examples 30
4 Economics of Multiscreen Video 37
4.1 Investment 37
4.1.1 An Exercise in Trade-offs 41
4.2 Revenue 47
4.2.1 Explicit Revenue 48
4.2.2 Implicit Revenue 54
4.3 Example: Customer Retention and Loyalty – Bright House’s iPad Application 56
5 ROI Analysis of Multiscreen Video 58
5.1 Model 58
5.1.1 The Model Assumptions 59
5.1.2 Devices and Concurrency 62
5.1.3 Number of Channels and Who Offers Them 63
5.1.4 On-Network Versus Off-Network 66
5.1.5 Bit Rate 67
5.1.6 Incremental Revenue and Expense Assumptions 68
5.1.7 Capital Costs 69
5.1.8 Pre-Packaging Versus Post-Packaging Storage Cost Trade-off 73
5.1.9 The Business Case Based on Churn Reduction Only 73
5.1.10 The Business Case Based on Churn Reduction Plus Minimal Revenue 75
5.1.11 Transcoding in the Home Versus the Network 78
6 Future of tving — the Ultimate MSV Service? 84
7 Glossary 91
8 Index of Companies 96